Log InSign Up

18 Underwriter Interview Questions (With Example Answers)

It's important to prepare for an interview in order to improve your chances of getting the job. Researching questions beforehand can help you give better answers during the interview. Most interviews will include questions about your personality, qualifications, experience and how well you would fit the job. In this article, we review examples of various underwriter interview questions and sample answers to some of the most common questions.

Underwriter Resume ExampleUse this template

or download as PDF

Common Underwriter Interview Questions

What is your experience in underwriting?

An interviewer would ask "What is your experience in underwriting?" to an underwriter in order to gauge the underwriter's familiarity with the process of underwriting insurance policies. The interviewer wants to know if the underwriter has a good understanding of the risks involved in underwriting and if they are able to properly assess those risks. This is important because the interviewer wants to make sure that the underwriter is able to properly evaluate the risks of each potential insurance policy and determine whether or not it is a good fit for the company.

Example: “I have worked as an underwriter for over 10 years. In that time, I have gained a great deal of experience in the field. I have worked with many different types of insurance policies and have a good understanding of how they work. I am able to identify risks and determine coverage levels that are appropriate for each individual policy. I have a strong background in math and statistics, which helps me to evaluate risk and make sound decisions when underwriting insurance policies.”

What are the most important factors you consider when underwriting a loan?

The interviewer is trying to gauge the underwriter's understanding of the loan process and their ability to identify key factors that could affect the loan. It is important for the underwriter to be able to identify these factors so that they can properly assess the risk of the loan and make a decision on whether or not to approve it.

Example: “The most important factors that I consider when underwriting a loan are the borrower’s credit history, employment history, and income. I also look at the property that is being purchased and the value of the property.”

What are your thoughts on risk management when it comes to underwriting?

There are a few reasons why an interviewer would ask this question to an underwriter. First, it allows the interviewer to gauge the underwriter's understanding of risk management. Second, it allows the interviewer to understand how the underwriter would approach underwriting a policy. Finally, it allows the interviewer to determine if the underwriter is able to identify and assess risks.

Example: “There are a few key things to keep in mind when it comes to risk management and underwriting. The first is that every loan is different, and each one comes with its own set of risks. As an underwriter, it's important to carefully evaluate each loan and determine the best way to mitigate those risks.

One of the most important aspects of risk management is making sure that you have a clear understanding of the borrower's financial situation. This includes looking at their credit history, employment history, and current income. By understanding all of this information, you can better assess the risk involved in the loan and make sure that you're comfortable with it.

Another important thing to keep in mind is that even if a loan seems low-risk, there's always the potential for something to go wrong. It's important to have contingency plans in place in case something does happen. For example, if a borrower defaults on their loan, you need to know what your options are and how you'll recoup your losses.

Overall, risk management is an important part of underwriting. By taking the time to carefully evaluate each loan and understand the borrower's financial situation, you can help minimize the risks involved.”

What have you found to be the best methods for evaluating a loan application?

There are a few reasons why an interviewer would ask this question to an underwriter. Firstly, they want to know if the underwriter is familiar with the various methods of evaluating a loan application. Secondly, they want to know if the underwriter is able to identify the most important factors to consider when evaluating a loan application. Finally, they want to know if the underwriter is able to explain the rationale behind their recommendations.

The ability to properly evaluate a loan application is critical for an underwriter. They must be able to identify any potential risks associated with the loan and make a recommendation as to whether or not it should be approved. The interviewer wants to ensure that the underwriter is familiar with the various methods of evaluation and is able to identify the most important factors to consider.

Example: “There are a number of methods that can be used to evaluate a loan application. Some of the most common include reviewing the applicant's credit history, employment history, and financial situation. Additionally, many lenders will require collateral for certain types of loans.”

How do you determine the maximum loan amount for a given borrower?

An underwriter may ask this question to get a sense of the applicant's financial literacy and understanding of the loan process. It is important for an underwriter to be able to determine the maximum loan amount for a given borrower in order to assess the risk of the loan and make a decision about whether or not to approve the loan.

Example: “The maximum loan amount that a borrower can qualify for is determined by a number of factors, including the borrower's income, debts, and credit history. Lenders will also consider the value of the property being purchased and the size of the down payment.”

What are your thoughts on debt-to-income ratios when underwriting a loan?

The interviewer is asking the underwriter for their thoughts on debt-to-income ratios because this is an important factor in underwriting a loan. A high debt-to-income ratio indicates that a borrower may have difficulty making their loan payments, and a lender may be reluctant to approve a loan for this borrower.

Example: “Debt-to-income ratios (DTI) are one of the most important factors that lenders consider when underwriting a loan. A high DTI ratio indicates that a borrower has a high level of debt relative to their income, which can make it difficult to repay the loan. Lenders typically prefer to see a DTI ratio of 36% or less, although some may accept a higher ratio depending on the borrower's credit history and other factors.”

What other factors do you consider when making your underwriting decisions?

There are many factors to consider when making underwriting decisions, and each underwriter will have their own process and considerations. Some common factors that may be considered include the applicant's credit score, employment history, and income. The interviewer is asking this question to get a better understanding of the underwriter's process and what factors they deem to be most important. This information can help the interviewer to better understand the underwriter's decisions and whether they are in line with the company's goals and standards.

Example: “There are a number of other factors that we consider when making our underwriting decisions, including the applicant's credit history, employment history, and financial stability. We also take into account the type of insurance coverage being applied for, as well as the amount of coverage requested.”

How do you stay up-to-date on changes in the underwriting industry?

The interviewer is asking this question to gain insight into the underwriter's work ethic and commitment to their profession. It is important for underwriters to stay up-to-date on changes in the underwriting industry because the industry is constantly changing and evolving. Underwriters who do not stay up-to-date on changes in the industry may find themselves at a disadvantage when it comes to new products and services.

Example: “There are a few different ways that I stay up-to-date on changes in the underwriting industry. I read industry publications, attend conferences and webinars, and network with other underwriters. By staying informed, I am able to identify new trends and changes that may impact my work. This allows me to be proactive in my approach to underwriting, which ultimately benefits my clients.”

What do you think is the most important thing for a successful underwriter to know?

There are a few reasons why an interviewer might ask this question to an underwriter. First, they may be trying to gauge the underwriter's understanding of the role that they play in the insurance industry. It is important for an underwriter to have a strong understanding of the products they are offering and the risks involved in order to properly assess and price policies. Additionally, the interviewer may be trying to get a sense of the underwriter's priorities. For example, if the underwriter believes that customer service is the most important thing, the interviewer may want to know how the underwriter plans to balance providing excellent customer service with other important tasks, such as accurately assessing risk.

Example: “There are a few things that are important for a successful underwriter to know. First, it is important to have a strong understanding of the products and services that are being offered. Second, it is important to have a strong understanding of the underwriting process and the different types of risks that are involved. Finally, it is important to be able to effectively communicate with both clients and insurers.”

How do you handle difficult or challenging situations when underwriting a loan?

The interviewer is trying to gauge the underwriter's ability to handle difficult situations that may arise during the loan process. It is important for the interviewer to understand how the underwriter would handle such situations so that they can determine if the underwriter is a good fit for the company.

Example: “When underwriting a loan, I always aim to maintain a calm and professional demeanor. I understand that the loan process can be stressful for both the borrower and the lender, so I do my best to keep things moving smoothly. If I encounter any difficult or challenging situations, I take a moment to assess the situation and then develop a plan of action. I always communicate with all parties involved so that everyone is on the same page and knows what to expect.”

Can you provide an example of a time when you had to make a difficult underwriting decision?

An interviewer might ask "Can you provide an example of a time when you had to make a difficult underwriting decision?" to a/an Underwriter in order to gain insight into their thought process and how they handle difficult decisions. It is important to be able to think through a difficult decision and explain the rationale behind the decision in order to show that you are able to handle complex situations.

Example: “I was working on an application for a small business loan and the business owner had some financial difficulties in the past. However, they had been working hard to turn things around and had made significant progress. I had to decide whether or not to approve the loan, and ultimately I decided to approve it. It was a difficult decision because there was some risk involved, but I felt that the business owner had demonstrated their commitment to turning things around and I believed they would be successful.”

What do you think is the most important attribute for an effective underwriter?

There are a few reasons why an interviewer might ask this question to an underwriter. First, they may be trying to gauge the underwriter's understanding of the job and what it takes to be successful in it. Second, they may be trying to determine if the underwriter has the necessary skills and attributes to be successful in the role. Third, they may be trying to get a sense of the underwriter's priorities and how they align with the company's priorities. Finally, they may be trying to get a sense of the underwriter's motivation for the job and what they hope to accomplish in it.

The most important attribute for an effective underwriter is attention to detail. Underwriters must be able to review a large amount of information and identify the key points that will impact their decision. They must also be able to identify any red flags that could indicate a riskier investment.

In addition to attention to detail, underwriters must also have strong analytical skills. They need to be able to understand complex financial information and make sound decisions based on that information. They must also be able to effectively communicate their findings to others.

Finally, underwriters must be able to work well under pressure. They often have tight deadlines to meet and must be able to handle a high volume of work. They must also be able to make quick decisions and adapt to changing circumstances.

Example: “The most important attribute for an effective underwriter is the ability to assess risk. Underwriters need to be able to quickly and accurately assess the risk of a potential insurance policy, and determine whether or not it is a good fit for the company. They also need to be able to price the policy correctly, so that the company can make a profit while still providing coverage for the policyholder.”

Can you describe a time when you had to go above and beyond in your job as an underwriter?

An interviewer would ask "Can you describe a time when you had to go above and beyond in your job as an underwriter?" to a/an Underwriter in order to gain insight into the Underwriter's work ethic and ability to handle difficult situations. This is important because it allows the interviewer to gauge whether the Underwriter is someone who is willing to put in the extra effort when required and whether they have the ability to think on their feet and solve problems.

Example: “I was working on a deal that was very complex and had a lot of moving parts. I had to really dig in and do my due diligence to make sure that everything was in order. I went above and beyond in my job as an underwriter to make sure that the deal went through smoothly.”

How do you handle criticism or negative feedback when it comes to your underwriting decisions?

The interviewer is asking this question to gain insight into the underwriter's ability to handle criticism and negative feedback. This is important because it allows the interviewer to gauge the underwriter's ability to accept constructive feedback and use it to improve their underwriting decisions. Additionally, this question allows the interviewer to assess the underwriter's emotional intelligence and resilience.

Example: “When it comes to criticism or negative feedback regarding my underwriting decisions, I always take it into consideration and try to learn from it. I understand that not everyone will agree with every decision I make, but I always aim to make the best decision possible based on the information available. If I receive criticism or negative feedback that is valid and constructive, I will definitely take it into consideration and try to use it to improve my underwriting decisions in the future.”

What are your thoughts on working with other professionals in the mortgage industry, such as loan officers and real estate agents?

An interviewer may ask "What are your thoughts on working with other professionals in the mortgage industry, such as loan officers and real estate agents?" to an underwriter to gauge the underwriter's ability to work collaboratively with others. This is important because in the mortgage industry, loan officers and real estate agents often need to work together in order to get a loan approved. If an underwriter is not able to work well with others, it could create delays or problems with the loan approval process.

Example: “I believe that working with other professionals in the mortgage industry is a great way to learn more about the business and to get better at your job. It can be helpful to talk to loan officers and real estate agents about their experiences and to ask for advice. I think it is important to build good relationships with these professionals so that you can trust them and work together effectively.”

Can you provide an example of a time when you had to work with another professional in the mortgage industry to complete an underwriting task?

An interviewer would ask "Can you provide an example of a time when you had to work with another professional in the mortgage industry to complete an underwriting task?" to a/an Underwriter to gain insight into the Underwriter's ability to collaborate with others. It is important for an Underwriter to be able to work well with others in order to complete tasks efficiently and accurately.

Example: “I was working on an underwriting task that required me to gather information from a real estate appraiser. I contacted the appraiser and requested the needed information. The appraiser was very responsive and provided me with the information I needed in a timely manner. This allowed me to complete the underwriting task and provide a decision to the borrower in a timely manner.”

How do you deal with stress while working as an underwriter?

The interviewer is asking this question to gain insight into the underwriter's ability to manage stress while working. This is important because underwriters need to be able to maintain a high level of accuracy and attention to detail while working under pressure.

Example: “There are a few ways that I deal with stress while working as an underwriter. First, I try to stay organized and keep on top of my workload. This helps me to stay focused and avoid getting overwhelmed. Secondly, I take breaks when I need them and make sure to get enough rest. Finally, I talk to my supervisor or another underwriter if I am feeling stressed about a particular case or situation.”

What are your long-term career goals as an underwriter?

The interviewer is trying to gauge if the underwriter is looking to stay with the company for the long haul. It's important to the company because they want to invest in employees that are looking to grow with the company.

Example: “My long-term career goals as an underwriter are to continue developing my skills and knowledge in the field, and to eventually become a senior underwriter or underwriting manager. I would also like to continue building strong relationships with clients and insurance companies.”

Related Interview Questions